Europe and Africa are exploring new cannabis opportunities but with varied progress. Some countries like Malta, Luxembourg, and Germany have taken steps toward limited adult-use models, while most remain focused on medical frameworks. In Africa, reforms center mainly on medical cultivation (as in Lesotho and Zimbabwe) and private use (as in South Africa), with few commercial adult-use markets in place. Canada are way out ahead and have legalized adult use nationwide, and in the US federal rescheduling is formally under consideration.
In this article, we highlight three key insights from a panel at the Global Cannabis Regulatory Summit 2025.
1. Overly Complex Laws Delay Progress
Cannabis policy is influenced by competing interests — advocates, business leaders, public health officials, and social justice groups. Attempting to address all of these priorities within a single piece of legislation has proven difficult. In both the US and Canada, efforts to address social agendas have reportedly led to administrative burden and slowed implementation.
In contrast, Germany’s Cannabis Act (CanG) is comprehensive yet focused. It has established a framework that regulators can execute effectively while still encouraging innovation and participation. This makes it a practical roadmap for emerging markets.
Another factor amplifying complexity is the disconnect between legislators and regulators. Consider Massachusetts. The state’s adult-use law (Mass. General Laws c.94G) included five key elements: local control over sales, the creation of a Cannabis Control Commission, licensing requirements, specific uses of the revenue raised, and a social equity program.
Shawn Collins, the first Commissioner of the Massachusetts Cannabis Control Commission, noted that these statutory elements did not necessarily harmonize in ways that made regulation straightforward. For example, there was a requirement to administer a social equity program aimed at communities disproportionately harmed by prohibition. This is a worthwhile goal — but it sits uneasily alongside the task of licensing for-profit cannabis companies.
The lesson here is that newly established markets should avoid trying to satisfy every legislative demand at once. Instead, achievable goals should be set, and execution should focus on what’s essential to the program’s long-term viability. In time, the industry will achieve more of its social goals as it grows and competes for control of the narrative in the public sphere.
2. Fragmented Local Control Creates Instability
Local control can sometimes accelerate progress, but it often creates fragmentation and inconsistency. Canada’s Cannabis Act allowed the provinces to implement regulations in line with the national framework, leading to a patchwork of approaches. The same issue has been evident in the US, where the absence of federal legalization has left individual states to design their own systems.
Quebec provides a clear example of divergence. According to Paul Furfaro, former regulator for the province, Quebec made structural choices that set it apart: exclusive state-owned dispensaries, pricing strategies designed to undercut the illicit market, and reinvestment of proceeds into cannabis research and public prevention campaigns. While effective for the province, this approach differs from others across Canada, forcing companies to adapt to distinct regulatory environments depending on where they operate.
This lack of uniformity undermines stability. Instead of one streamlined market, cannabis companies, investors, and consumers face a confusing patchwork of rules. The result is inefficiency and unpredictability, making it harder to build a cohesive national industry.
3. Clarity and Stability Drive Market Growth
For businesses considering entering the market, certainty is essential. Torsten Greif, co-founder of Four 20 Pharma, emphasized that the stability of Germany’s regulatory framework was a major factor in their decision to participate in the cannabis industry.
Entrepreneurs and investors want rules that are clear, fair, and executable. Strong regulations also create conditions for a competitive supply chain. When cultivators can compete on quality and price without being limited by geographic restrictions, the market becomes more resilient and better equipped to serve patients and consumers.
With market-focused regulation, regulators have time for dialogue with participants about what’s working and what isn’t — which has contributed to the success of the German industry.
Takeaways for Brokers and Insurance Professionals
Countries that are leading in cannabis regulation provide guidance for emerging markets. They reveal what’s needed (simple, market-focused regulation) and what to avoid (complexity — and trying to meet all legislative demands at once).
These insights may catalyze progress in those regions. But we’re still a long way from having a harmonized international framework. Companies operating in this fragmented regulatory environment need specialized coverage based on a deep understanding of the industry.
Relm provides dedicated cannabis insurance solutions that cover your client’s unique exposures. Contact us today to learn more.
